Photo Credit: Woye
In a recent announcement, Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL), revealed that the company has once again become the sole importer of petrol in Nigeria. This development comes as private companies face challenges accessing foreign currency due to a shortage, raising questions about the return of the petrol subsidy regime.
The Sole Importer Status:
Kyari stated, “We are the only company importing petrol into the country. None of them can do it today. For them, access to foreign exchange is difficult. We create foreign exchange (FX), therefore we have access to FX, while their access to FX is limited.” This declaration underscores the NNPCL’s dominant role in the nation’s petrol supply chain.
Implications of the Exclusive Import Role:
Oil and gas analyst, Kayode Oluwadare, sees this development as unofficial confirmation of the return of the petrol subsidy in Nigeria. Initially, the deregulation of petrol pricing was intended to allow independent marketers to import petrol independently. However, the NNPCL’s resurgence as the sole importer suggests a shift back towards the subsidy regime.
Government’s Response to Pressure: Oluwadare explains that this change was necessitated by the mounting pressure on the government since the official removal of petrol subsidies. He remarked, “The government is gradually bringing back the conditions of the fuel subsidy regime. We are now back to the status quo. In the coming days, the petrol pump price will remain the same. We may also see the petrol pump price slightly coming down, with the current global trend, we are not likely to see an increase in petrol pump prices.”
The NNPCL’s resurgence as the exclusive importer of petrol in Nigeria raises concerns about the return of the petrol subsidy regime, highlighting the challenges faced by private companies in accessing foreign currency for imports. This development could have significant implications for Nigeria’s energy sector and its economy as a whole.
Credit: Imran Muhammad/X
